International Journal of Economics (IJEC)

Price Dynamics and Demand Elasticity in the Platform Economy Era: A Quantitative Analysis of the Online Retail Sector in Indonesia

Ahmad Husin Lubis — 2026-01-05

This study investigates the determinants of price dynamics and demand elasticity in Indonesia's online retail sector, with particular emphasis on platform economy effects during the 2024-2025 period. Employing a double-log regression methodology with ordinary least squares (OLS) estimation, we analyze transaction-level data from major e-commerce platforms including Shopee, Tokopedia, and Lazada. The research reveals that demand elasticity in the Indonesian online retail market exhibits pronounced price sensitivity (elasticity coefficient: -1.23 to -1.67), indicating elastic demand characteristics. Cross-price elasticity estimates suggest significant substitution effects between platforms (range: 0.45 to 0.78), driven by the mobile-first architecture and promotional intensity of the digital ecosystem. Dynamic pricing mechanisms implemented by major platforms demonstrate adaptation to localized demand variations and competitive pressures. Our findings demonstrate that platform-based price competition generates downward pressure on margins while increasing consumer surplus, with elasticity heterogeneity across product categories ranging from -0.89 (electronics) to -1.95 (fashion and accessories). The study provides quantitative evidence that platform economy dynamics fundamentally reshape traditional price-demand relationships in emerging markets, offering actionable insights for retailers, policymakers, and platform operators managing competitive pricing strategies in this rapidly evolving ecosystem

Integrating Maqashid Syariah in Sustainable Development Goals (SDGs): A Conceptual Framework for Green Economic Policy

Effendi Sadly — 2026-01-13

This study develops a quantitative framework for integrating Maqashid Syariah principles within Sustainable Development Goals (SDGs) implementation for green economic policy in Indonesia. Employing a quantitative research design with panel data analysis covering 2018-2024, this research examines the relationship between Islamic finance development and SDG achievement across 34 provinces. The study constructs a Maqashid-SDG Integration Index comprising five dimensions: preservation of religion (hifz ad-din), life (hifz an-nafs), intellect (hifz al-aql), progeny (hifz an-nasl), and wealth (hifz al-mal). Data from Bappenas, OJK, Ministry of Finance, and BPS reveal that Islamic finance assets reached IDR 2,582 trillion in 2023, representing 10.95% market share, while green sukuk issuance totaled USD 6.9 billion since 2018. Statistical analysis demonstrates a significant positive correlation (r=0.742, p<0.01) between Islamic finance penetration and SDG performance indicators. Regression results indicate that a 1% increase in Maqashid-aligned financing contributes to 0.63% improvement in environmental SDG indicators. The findings validate that integrating Maqashid Syariah into SDG frameworks enhances policy effectiveness for green economic transition, with Indonesia's SDG index reaching 70.22 in 2024. This research provides policymakers with a measurable framework to optimize Islamic finance mechanisms for sustainable development outcomes

Bridging Faith and Finance: A Comparative Analysis of Islamic Bank Resilience and Contagion Risk During Global Economic Shocks (2008 vs. 2020 Crises)

Effendi Samsul — 2026-01-16

This study investigates the comparative resilience and contagion risk profiles of Islamic banking systems during two major global economic crises: the 2008 Global Financial Crisis (GFC) and the 2020 COVID-19 pandemic. . However, profitability declined significantly in 2009 when the crisis affected the real economy. Conversely, during the COVID-19 pandemic, Islamic banks exhibited comparable systemic vulnerabilities to conventional banks when facing exogenous shocks, though with significantly reduced spillover effects. CAR increased from 24.0% to 26.5% while NPF improved from 2.1% to 2.0% during COVID-19, demonstrating structural resilience despite ROA declining from 1.9% to 1.4%. CoVaR analysis reveals Islamic banks receive significant directional risk spillover from conventional banks but transmit substantially less contagion. These findings suggest that while Islamic banking's profit-loss sharing principles and asset-backed financing provide buffer against financial sector crises, the system remains vulnerable to real economy disruptions, challenging the prevailing narrative of unconditional Islamic banking superiority during economic turbulenceThis study investigates the comparative resilience and contagion risk profiles of Islamic banking systems during two major global economic crises: the 2008 Global Financial Crisis (GFC) and the 2020 COVID-19 pandemic. However, profitability declined significantly in 2009 when the crisis affected the real economy. Conversely, during the COVID-19 pandemic, Islamic banks exhibited comparable systemic vulnerabilities to conventional banks when facing exogenous shocks, though with significantly reduced spillover effects. CAR increased from 24.0% to 26.5% while NPF improved from 2.1% to 2.0% during COVID-19, demonstrating structural resilience despite ROA declining from 1.9% to 1.4%. These findings suggest that while Islamic banking's profit-loss sharing principles and asset-backed financing provide buffer against financial sector crises, the system remains vulnerable to real economy disruptions, challenging the prevailing narrative of unconditional Islamic banking superiority during economic turbulence